OpenAI's agreement to deploy AI on classified Department of Defense networks triggered a massive public backlash, with the #QuitGPT movement attracting over 2.5 million supporters and ChatGPT uninstalls surging 295% overnight. The decision to support military applications became a lightning rod for concerns about AI safety, corporate responsibility, and the potential weaponization of frontier models. In sharp contrast, Anthropic—which refused a similar Pentagon offer on ethical grounds—saw Claude climb to number one on the US App Store for the first time. Internal documents show OpenAI employees defending Anthropic's position, suggesting tension between organizational leadership and workforce values. The incident underscores that ethical stances on AI applications are no longer purely philosophical—they're becoming competitive differentiators with real business consequences as users and employees vote with their wallets and attention.